Anand Rathi Wealth's initial public offer (IPO) is set to open for subscription on Thursday in a three-day initial share sale. The wealth management arm of Anand Rathi Financial Services has fixed the price range of the issue at Rs 530-550 per share. The minimum bid lot is 27 equity shares and multiples.

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The share sale consists entirely of an offer for sale (OFS), with promoters and other shareholders offloading over 1.2 crore shares. At the upper end of the price range, the issue will fetch over Rs 660 crore.

Anand Rathi Financial Services will sell Rs 92 lakh shares, while Anand Rathi, Pradeep Gupta, Amit Rathi, Supriya Rathi, Priti Gupta, Rawal Family Trust, and Feroze Azeez will sell over 3.75 lakh shares each. Jugal Mantri will sell over 90,000 shares.

Here are the key things to know about the Anand Rathi Wealth IPO:

Important dates

: The IPO bidding process will begin tomorrow, December 2 and conclude on December 6. The share allotment will be finalised by December 9. And the trading will begin on both National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on December 14, tentatively.

IPO price band: The price band of the IPO is Rs 530-550.

Lot size: Investors can bid for a lot of 27 shares and multiple thereof. Retail investors have to invest a minimum of Rs 14,850 for one lot. And Rs 1.93 lakh for 13 lots.

Reservation: 50 percent of the offer is reserved for qualified investor buyers and 15 percent for non-institutional investors. The remaining 35 percent of the issue is reserved for retail investors. Nearly 2.5 lakh shares are reserved for employees of the company. They will get shares at a discount of Rs 25 of the issue price.

Fund utilisation: The company is aiming to avail of the benefits of listing on a stock exchange.

Company profile: The company is the wealth management arm of Anand Rathi Financial Services. It is registered with the Association of Mutual Funds in India (AMFI) and focuses on the sale of financial products and mutual fund distribution. In its private wealth (PW) vertical, the company manages assets worth over Rs 29,472 crore.

It caters to over 6,500 client families with a team of 233 relationship managers. As of August 2021, nearly 50 percent of clients had spent over three years with the company.

The company has two new-age business verticals, digital wealth (DW) and Omni Financial Advisors (OFA). DW vertical is a fintech extension that addresses individuals or groups of individuals with assets between Rs 10 lakh to Rs 5 crore. The OFA vertical provides a tech platform to independent financial advisors.

Its offices are located across the country in 11 cities, from Mumbai to Jodhpur to Kolkata to Chennai.

Financials: Anand Rathi Wealth profit declined from Rs 61.61 crore in the financial year 2020 to Rs 45.09 crore this year. The revenue also took a hit as it declined to Rs 265.33 crore from Rs 331.83 crore during the period under consideration.

Key risks: Anand Rathi's relationship managers are its strength. In case, it fails to retain or attract key personnel, the business may take a hit. It also depends on one of its group companies — Anand Rathi Global Finance Limited (ARGFL). It is dependent on business related to structured products. So if ARGFL faces some adversities, Anand Rathi Wealth can take a hit. These structured products contributed to over 60 percent of the total revenue of the company.

Grey market premium (GMP): The company's grey market premium for the IPO is currently at Rs 125, according to data from IPO Watch.

(Edited by : Ajay Vaishnav)

First Published:Dec 1, 2021 5:13 PM IST